[Quote No.23980] Need Area: Money > Invest "An economic franchise...will be demonstrated by a company’s ability to regularly price its product or service aggressively [high margins] and thereby to earn high rates of return on capital. Moreover, franchises can tolerate mismanagement. Inept managers may diminish a franchise’s profitability, but they cannot inflict mortal damage. In contrast, a ‘business’ earns exceptional profits only if it is the low cost operator or if supply of its product or service is tight. Tightness in supply usually does not last long. With superior management, a company may maintain its status as a low cost operator for a much longer time, but even then unceasingly faces the possibility of competitive attack. And a business, unlike a franchise, can be killed by poor management." - Warren BuffettAuthor's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.23988] Need Area: Money > Invest "As value investors, they have not based their investment decisions on expectations of perfection. They do not buy high multiple [p/e] stocks for whom an earnings disappointment can mean a punishing drop in the share price. The companies in their portfolio are sound enough to recover from short-term problems. As a consequence, the mistakes they have made have not buried them. Their poor investments...have resulted more in dead money than fatal declines." - Bruce C. N. Greenwald, Judd Kahn, Paul D. Sonkin, Michael van BiemaQuote from ‘Value Investing From Graham to Buffett and Beyond’Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.23989] Need Area: Money > Invest "[Robert H.] Heilbrunn examined the price, earnings, and dividend histories of specific companies to establish the ranges of the price to earnings (P/E) multiple and the dividend yield within which the securities had traded. The investment strategy based on this information is to buy stocks when they sell within the lower portion of their historical P/E multiple range, [the lower portion of their price to book value range,] within the higher portion of their dividend yield range, or both. By establishing the ranges with precision, this approach provides a check on the emotions that can distort investment judgment, both the exuberance engendered by a rising market and the despair occasioned by a falling one. It applies a discipline for buying stocks – when they are cheap - and, usually more valuable, a discipline for selling them – when they are dear...The more customary value approach has been to search for stocks with low P/Es, high dividend yields, or low price to book multiples as measured simultaneously against other stocks in the [market] universe." - Bruce C. N. Greenwald, Judd Kahn, Paul D. Sonkin, Michael van BiemaQuote from ‘Value Investing From Graham to Buffett and Beyond’Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.23991] Need Area: Money > Invest "...a feeling of over-optimism in bull markets is one which must be very carefully guarded against by the professional investor as well as the amateur, since it is generally acknowledged that...[both are] influenced by the tremendous quantity of bullish sentiment...in the newspaper and magazine article, speeches, reports, analyses...which emanate from the financial district. This statement is in no way to be construed as a criticism of the security analyst, but being human, and this is probably a disadvantage in this profession, he is subject to the same psychological pressures as everyone else." - Robert H. HeilbrunnInvestor and Investment theorist, who at one time worked for investment legend and financial analyst, Ben Graham Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.23992] Need Area: Money > Invest "He [Michael Price] looks at...companies missing earnings expectations, companies in trouble, and companies hitting new lows. His definition of a cheap stock is one selling at 40 percent below his estimate of its intrinsic value. Many of the companies he spots aren’t there yet, so he waits until the price drops to meet his standards. In the interim, he does his homework on these potential investments. He wants to know the business..so that he can be confident about his valuation...There are additional impediments that Price pays attention to, such as too much debt on the balance sheet to allow a purchaser to finance an acquisition... " - Bruce C. N. Greenwald, Judd Kahn, Paul D. Sonkin, Michael van BiemaQuote from ‘Value Investing From Graham to Buffett and Beyond’Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.23999] Need Area: Money > Invest "A famous metaphor he [Ben Graham] invented: You are in business with a sweet but slightly loony gentleman named Mr. Market, who happens to go to emotional extremes. Either he’s euphoric or he’s depressed. And every business day Mr. Market is willing to buy our stocks or sell to us his. You can just ignore his offers. Or, when he wants to buy your stocks at absurdly high prices, sell, and when he wants to sell you his stocks at absurdly low prices, buy. In fact, when Mr. Market has a great many cheap stocks to sell you, it’s probably time to stock up in general. When Mr. Market has very few stocks to sell, it’s probably time to sell." - Warren BorosonQuote from 'J.K Lasser's Pick Stocks like Warren Buffett - What You Can Learn From The Best Investor Of Our Time'
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[Quote No.30459] Need Area: Money > Invest "[Like all markets, property is a function of supply and demand, but with data-finding being less efficient than it is with shares, real estate/housing can be an even harder market to forecast.] There are a lot of econometrics you can use... You can then look at population growth, at immigration, doing estimates of how many people you need in a household – whether it’s going up, whether it’s going down. [And factor in the housing industry’s estimates for surplus or shortfall in the housing needed nationwide and that area, but remember...] It doesn’t matter if there is a shortage of housing; if people can’t service their loans [affordability], they’re going to sell. If everybody sells at the same time, it’s not relevant [That is if everybody sells at once, due to high home mortgage interest rates and/or increasing unemployment - say during a recession, a housing shortage won't stop a price fall]. If you’ve got an excess of stock it’d be even worse." - Alan OsterNational Bank’s chief economist, who used to chair an Australian Treasury Department committee looking at housing demand and supply.Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24004] Need Area: Money > Invest "[Bargain Stocks would have:]
-An earnings to price yield (e/p - the opposite of the price-earning ratio p/e) that is twice the current yield of an AAA (top-rated) bond. If bonds are yielding 5 percent, the earnings yield of a stock should be 10 percent. In other words, you could get 5 percent fairly safely; to take on the risk of a stock, you want twice the possible reward.
–A p/e ratio that is historically low for that stock. Specifically, it should be two-fifths of the average p/e ratio the shares had over the past five years.
-A dividend yield of two-thirds of the AAA bond yield. (obviously, stocks that don’t pay dividends wouldn’t qualify under this rule.)
-Earnings that have doubled within the past ten years.
-Earnings that have declined no more than 5 percent in [no more than] two of the past ten years." - Ben GrahamFrom his famous investment classic, ‘Security Analysis’Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24008] Need Area: Money > Invest "...the risk of paying too high a price for good-quality stocks – while a real one – is not the chief hazard confronting the average investor in securities. Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of favourable business conditions. [In good business conditions even bad companies make money and therefore look like good investments, to the inexperienced investor...because ‘a rising tide {discretionary income} raises {profits} all boats {companies} in the harbour {market}’. What they unfortunately learn in the following inevitably poor business conditions, is that the boat isn’t in fact sea-worthy and what they thought was a thoroughbred is actually a dog.]" - Benjamin Graham(1894 - 1976), influential economist and professional investor who is today often called the 'Father of Value Investing' and the 'Dean of Wall Street.' Quote from his book, 'Security Analysis'Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24014] Need Area: Money > Invest "If the job has been done correctly when a common stock is purchased, the time to sell it is – almost never...[However it’s important to to sell if:]... 1- The original purchase was a mistake...None of us like to admit to himself that he has been wrong...[but]... More money has probably been lost by investors holding a stock they really did not want until they could ‘at least come out even’ than for any other single reason... 2- The company has changed [for the worse, e.g.]... Smugness, complacency, or inertia replace the former drive... or, 3- There is a better buy out there." - Philip A FisherQuoted from his famous book, ‘Common Stocks and Uncommon Profits’Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24020] Need Area: Money > Invest "{We] believe our companies have important competitve advantages that will endure over time. This attribute, which makes for good, long term investment results, is one Charlie [Munger] and I occasionally believe we can identify. More often, however we can’t – at least not with a high degree of conviction. This explains, by the way, why we don’t own stocks of tech companies, even though we share the general view that our society will be transformed by their products and services. Our problem – which we can’t solve by studying up – is that we have no insights into which participants in the tech field possess a truly durable competitive advantage." - Warren BuffettAuthor's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24026] Need Area: Money > Invest "After some...mistakes, I learned to go into business only with people whom I like, trust, and admire. As noted before, this policy of itself will not ensure success: A second-class textile or department store company won’t prosper simply because its management are men that you would be pleased to see your daughter marry. However, an owner – or investor – can accomplish wonders if he manages to associate himself with such people in businesses that possess decent economic characteristics. Conversely, we do not wish to join with managers who lack admirable qualities, no matter how attractive the prospects of their business. We’ve never succeeded in making a good deal with a bad person [...that is someone, who doesn’t have the ownership mentality and therefore isn’t wholeheartedly working on behalf of the real owners of the business - his or her shareholders, but rather is focused, first and foremost, on their own financial well-being]" - Warren BuffettAuthor's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image

[Quote No.24031] Need Area: Money > Invest "...following the stock market intensively can make investors very nervous. It’s hard to hold onto a stock for 10 years when you are regularly receiving bad news about that stock. Days when stocks go down are almost as frequent as days when they go up. In fact, if homeowners knew what the value of their homes were day after day, instead of at intervals of many years [and were able to sell them quickly and easily and have somewhere else to live], perhaps they would not have hung on so patiently. What if a home had been worth $250,000 in 2000, then only $225,000 in 2001? Would the homeowner have sold in a panic? [This long-term house-owning attitude can and should be applied to investing in the shares of great companies] " - Warren BorosonQuote from 'J.K Lasser's Pick Stocks like Warren Buffett - What You Can Learn From The Best Investor Of Our Time.'Author's Info on Wikipedia - Author on ebay - Author on Amazon - More Quotes by this AuthorStart Searching Amazon for GiftsSend as Free eCard with optional Google Image